Lula faces structural stalemate; success hinges on pragmatic opposition deals

Brazil's new government under Lula confronts a structural power stalemate, with success dependent on forging pragmatic agreements with the opposition on fiscal, judicial, and foreign policy issues. The analysis underscores a fragmented political landscape where unilateral action is constrained, and coalition-building becomes essential for governance. This reflects a shift from campaign rhetoric to a reality of negotiated governance, with implications for policy predictability and market confidence.

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